US stocks open lower as economy slows in Q1

NEW YORK -- U.S. stocks are edging lower after the U.S. reported its economy slowed more drastically in the first quarter than economists expected.

The Dow Jones industrial average was down one point to 16,534 shortly after the market opened Wednesday. The Standard & Poor's 500 index fell three points, or 0.1 percent, to 1,874. The Nasdaq was off 20 points, or 0.5 percent, to 4,082.

The economy slowed in the first three months of the year as winter storms chilled business activity. The Commerce Department said growth downshifted to a barely discernible 0.1 percent annual rate in the January-March quarter, the weakest since the end of 2012.

Twitter fell $5, or nearly 12 percent, to $37.63 in early trading. The social media company's growth disappointed investors when it reported results late Tuesday.

Ohio worker dies in early morning accident

BLUE ASH, Ohio -- A worker in southwest Ohio was pinned between a wall and a metal ramp and died Wednesday in an apparent early morning accident, authorities said.

First responders to a 911 call found a man dead at about 1:15 a.m., police in the northeast Cincinnati suburb of Blue Ash said. Police said he was between the wall and the ramp in a loading area at the SpartanNash warehouse.

Blue Ash police identified him as Donald J. Stevenson, a 65-year-old truck driver from Lima, Ohio.

The Hamilton County Coroner's office was investigating, and authorities said the federal Occupational Safety and Health Administration was notified.

SpartanNash spokeswoman Meredith Gremel said the company was also investigating, and that "thoughts and prayers go out to the family." She said she couldn't comment further on the death while the investigation was ongoing.

The Grand Rapids, Mich.-based food distribution and retail company was formed last year in a merger of Spartan Stores and the Nash Finch Company.

Groups aim to save rail route through 3 states

SANTA FE, N.M. -- A coalition of communities and private organizations in western Kansas and southern Colorado has pledged to provide $9 million to keep Amtrak's Southwest Chief passenger line on its current route through those areas and northern New Mexico.

The group announced Tuesday that Burlington Northern Santa Fe Railway, which owns the tracks, has said it will contribute $2 million to the effort, the Santa Fe New Mexican reported (http://goo.gl/8NDFrH ).

In addition, Amtrak has pledged $4 million and the Kansas Department of Transportation has committed $3 million.

The Southwest Chief travels between Chicago and Los Angeles, but part of the current route is in jeopardy because of questions about maintenance and upgrades of track

Amtrak's operating agreement with BNSF expires in 2016. An Amtrak official told New Mexico lawmakers earlier this year that BNSF doesn't want to improve some track used by its slower-moving freight trains to meet higher speed requirements needed for Amtrak's passenger trains.

The money from the coalition would be provided to match possible federal Transportation Infrastructure Generating Economic Recovery grants.

Kansas previously applied unsuccessfully for one of the grants to help fund its costs for keeping the Southwest Chief on its current route.

No such steps have been taken in New Mexico, where a state study is underway to determine the economic benefits, infrastructure needs and costs involved with the route and possible constitutional constraints. Gov. Susana Martinez's administration is hopeful for federal intervention.

U.S. Sens. Tom Udall and Martin Heinrich, both New Mexico Democrats, have urged a Senate committee to set aside funds for capital improvements for long-distance rail operations throughout the country, including the Southwest Chief passenger line.

"That's the most logical," said Tom Church, Martinez's Cabinet secretary for transportation. "That's the way it's always been funded."

A commitment of $4 million a year for a decade from each of the two railroads and the three states involved would be necessary to keep Amtrak running the Southwest Chief through the areas, including the northern New Mexico communities of Raton, Las Vegas and Lamy, the closest Amtrak station to Santa Fe.

Attempts by the New Mexico Legislature failed earlier this year to secure funding for the state's estimated $40 million share to keep the line operating. In Colorado, legislation that would help identify a funding stream for that state's share is pending.

First Lady Not First Priority For Graduates

Audio for this story from Tell Me More will be available at approximately 3:00 p.m. ET.

Host Michel Martin reflects on the recent controversy over first lady Michelle Obama's upcoming speech to high school graduates in Kansas.

WellPoint 1Q profit falls 21 pct, outlook rises

INDIANAPOLIS -- WellPoint's first-quarter net income fell 21 percent as the nation's second-largest health insurer adjusted to coverage changes introduced by the health care overhaul.

But the Blue Cross Blue Shield insurer touted the underlying strength of its business and once again raised its 2014 forecast after reporting on Wednesday quarterly earnings that topped Wall Street expectations. Its stock climbed in premarket trading after it released results.

The federal overhaul expanded coverage to millions of people starting this year, but the law also enacted taxes and fees, as well as changes to how insurers write their coverage.

Those changes led to insurance coverage with richer benefits and higher costs at the start of the year, spokeswoman Kristin Binns said. Those higher costs came from items like the law's requirement for complete coverage of preventive services and from plans with lower deductibles, which don't encourage patients to hold off on using their insurance.

Deductibles are the amount a patient must pay out of pocket before most insurance coverage starts. With high deductible plans, insurers typically see a rise in claims or expenses at the end of the year as customers pay off their deductibles and then rush to use their coverage before that deductible resets in the new year.

The insurer's general and administrative expenses climbed 28 percent to $2.49 billion in the quarter in part because of these factors, Binns said.

WellPoint has made a bigger bet than some of its competitors on the overhaul, which expands the state-federal Medicaid program and introduced state-based insurance exchanges on which people can buy coverage with help from income-based tax credits. The insurer is counting on its well-known Blue Cross-Blue Shield brand to help sell coverage on 14 exchanges.

It also expects significant growth from the Medicaid expansion. WellPoint's 2012 acquisition of fellow insurer Amerigroup gave it a presence in several states where coverage is expanding. The insurer said Wednesday it added 121,000 Medicaid members in the first three months of the year.

Overall, WellPoint earned $701 million, or $2.40 per share, in the three months that ended March 31. That's down from $885.2 million, or $2.89 per share, in last year's quarter. Earnings excluding one-time items totaled $2.30 per share.

Operating revenue climbed slightly to $17.64 billion. That excludes investment gains or losses.

Analysts, who typically exclude one-time items from their estimates, expected earnings of $2.10 per share on $17.95 billion in revenue, according to FactSet.

Citi analyst Carl McDonald said in a research note that it wasn't clear whether any of the factors that helped WellPoint top earnings forecasts will continue for the rest of the year.

WellPoint Inc. indicated otherwise by raising its 2014 adjusted earnings to greater than $8.40 per share after predicting earnings of more than $8.20 per share last month.

"We are off to a strong start, supporting an increase in our earnings guidance for the full year," CEO Joseph Swedish said in a statement.

Analysts expect, on average, $8.41 per share.

The insurer's shares climbed $2.01, or 2.1 percent, to $97.40 in premarket trading about an hour before markets opened Wednesday. The stock had hit an all-time high of $102.56 last month.

New stun gun orders boost Taser's 1Q profit

SCOTTSDALE, Ariz. -- New orders for its stun guns helped lift Taser International Inc.'s first-quarter profit by 3 percent from the same period a year ago.

The company, which is based in Scottsdale, Ariz., said it received orders for X2 and its new X26P stun guns from law enforcement agencies in Virginia, Texas, North Carolina and other states during the quarter.

Revenue in its weapons unit rose 16 percent to $32.5 million. Revenue from both its Axon wearable video cameras and Evidence.com, an online software that lets police officers upload and store images and videos used as evidence, rose 52.6 percent to $3.7 million.

Taser said its net income rose to $3.4 million, or 6 cents per share, in the quarter ending March 31, compared with $3.3 million, or 6 cents per share, in the same quarter a year ago. Total revenue rose 18.9 percent to $36.2 million from $30.4 million.

CEO Rick Smith said he hopes to grow the company's revenue from outside the country. A police department in London is trying out Taser's wearable cameras and using Evidence.com, Smith said.

Its shares dropped $1.49, or 8.7 percent, to $15.59 in morning trading.

FDA weighs over-the-counter approval of Singulair

WASHINGTON -- Federal health regulators are weighing the risks of permitting Merck to sell its prescription respiratory pill Singulair as an over-the-counter medicine for allergies.

In a review posted online, the Food and Drug Administration raises concerns that the drug could be used inappropriately by teenagers or by patients with more serious conditions, like asthma.

On Friday, the agency will ask a panel of advisers to vote on the drug's safety for nonprescription use.

Singulair, first approved in 1997, was once Merck's best-selling drug with revenue of $4.76 billion in 2011. But sales have plummeted since Singulair's patent expired mid-2012, exposing the brand to lower priced generic competition.

Merck hopes to give the drug a new life as an over-the-counter medication, competing alongside antihistamines pills like Claritin and nasal sprays like Nasacort.